I just got a new 2nd-generation iPod Touch 16GB. I believe I had a 2nd gen iPod Touch 8GB before.. but back when I did if I played a song, the album art would show up for that song on my locked screen. However this new iPod Touch doesn't do that (it just shows the default wallpaper I chose) and I can't seem to find the settings I need for it. Not looking for a jail-breaking solution by the way. Thanks.

Is that exclusive to the iPodTouch? I don't see that option when I connect my iPhone 4 to iTunes.
–
Randy6T9Apr 18 '11 at 3:11

I thought it applied to both, the other thing I would think is the album art cache is corrupted, you can remove iTunes\Album Artwork\Cache while itunes isnt running, and see if that helps.
–
hobsApr 18 '11 at 11:54

I had the same problem with my ipod touch. I spent roughly 5 hours getting album art for all my music and even selected art for the video game tracks. It would even display on the ipod but just not when it was locked and that bugged me. From browsing google I found a simple solution: Simply power off your ipod and then reboot it. When it comes back on the problem should be solved, that's what worked for me.